NHFIC announces first construction loan with Community Housing Provider
Wednesday 17 July 2019
The National Housing Finance and Investment Corporation (NHFIC) has today announced it has issued its first ever construction loan to a Community Housing Provider (CHP).
BlueCHP will borrow $45.7 million for the construction of at least 93 new dwellings in affordable housing projects at Lane Cove and Liverpool, on sites being acquired under the NSW Government’s Communities Plus program.
The construction loan will be for a period of two years at an interest rate of less than 4%, which BlueCHP expects will generate savings of more than $600,000 each year.
NHFIC will make an additional $6 million loan available upon project completion to support BlueCHP’s retention of 48 of those dwellings for the provision of affordable housing, including for people with disabilities. At least 24 new social housing dwellings will also be delivered to the NSW Land and Housing Corporation.
NHFIC CEO Nathan Dal Bon said providing construction finance to CHPs enhances their ability to increase and accelerate the supply of social and affordable housing.
“In the projects we have financed to date, NHFIC has demonstrated the tangible benefits of delivering low-cost, long tenor financing to CHPs,” Mr Dal Bon said.
“Extending our financing into construction enables us to work with CHPs to accelerate the delivery of new housing supply for Australians in need.
“This project demonstrates how NHFIC can support CHPs to work with state and territory housing bodies to unlock sites in key areas and construct much-needed rental dwellings across the full spectrum of affordable and social housing.”
BlueCHP’s CEO Charles Northcote said the construction loan was an important milestone for BlueCHP and the NHFIC.
“To date, CHPs have borrowed from commercial banks for construction. This is the first time any CHP has been able to access concessional finance for new builds,” Mr Northcote said.
Mr Northcote said it was a significant moment in BlueCHP’s 11-year history and the Federal Government, particularly Scott Morrison, who as Treasurer set us on the path to the NHFIC, should be congratulated.
“I’d also like to thank NHFIC CEO Nathan Dal Bon and Chair Brendan Crotty and also our legal team Paul Paxton and Daniel Marks from Minter Ellison, who have worked very hard on the deal,” Mr Northcote said.
BlueCHP is a leading Tier One CHP with specialist teams located in NSW and Queensland.
BlueCHP works with partners to design and deliver transformational housing projects, offering services from project inception to handover while also delivering its own affordable housing.
Over its 11 years of operation BlueCHP has delivered more than 1,700 dwellings, retaining approximately 700, which are worth more than A$300 million.
BlueCHP homes house 1,400 people, 278 of which are single women, 77 are indigenous Australians and 128 are single women with children.
About Communities Plus
The NSW Government’s $22 billion Communities Plus building program is the largest of its kind in Australia. Communities Plus will see 23,500 new and replacement social and affordable dwellings delivered across NSW over the next 10 years. Major sites include, Ivanhoe, Waterloo, Telopea, Redfern, Arncliffe, Riverwood and Villawood.
For more information, visit https://www.communitiesplus.com.au/
Kathy Lindsay | 0437 230 007 | Wells Haslem Mayhew
Charles Northcote | 0407 001 020 | BlueCHP